The commute plays a major role in any job decision. And that’s not just true for prospective hires. Your current employees are thinking about it, too: “How much is my commute costing me?” Helping your employees save on their commute will give you an edge on your benefit strategy. And every advantage counts in attracting and keeping talent.
As an employer, offering commuter benefits means savings on payroll taxes. Your employees save too, by paying for eligible work-related commuting costs with pretax dollars. This lowers their federal taxable income and increases their take-home pay.
Transit ordinances are laws designed to reduce traffic congestion and protect the environment. In some cases, they require employers to offer commuter benefits to their employees. These laws are currently in effect in New York City, Washington D.C., Seattle and parts of California. Other cities will follow. We can help you stay up to date and in compliance with these ordinances.
Employees can use pretax dollars to pay for eligible commuter expenses. Some common expenses may include metro and transit passes, token fare cards, vouchers or similar items for:
Employees can use pretax dollars to pay for eligible parking costs at or near:
Employees have all they need to manage commuter benefits on the PayFlex member website. After enrolling in the online commuter benefits program, they can: